Business
Obsidian Energy Announces Up to $22.5 Million Equity Issue
Proceeds to pay for acquisition of 45 percent partnership interest in Peace River Oil Partn...
About this update from Obsidian Energy Ltd
[{"type":"text","content":"Obsidian Energy Announces Up to $22.5 Million Equity IssueProceeds to pay for acquisition of 45 percent partnership interest in Peace River Oil PartnershipCalgary, Alberta--(Newsfile Corp. - November 2, 2021) - OBSIDIAN ENERGY LTD. (TSX: OBE) (OTCQX: OBELF) (\"Obsidian Energy\", the \"Company\", \"we\", \"us\" or \"our\") is pleased to announce it has filed and been receipted for a preliminary short form prospectus with the securities commissions in each of the provinces of Canada, other than Québec, in connection with a \"best efforts\" marketed equity offering of subscription receipts (\"Subscription Receipts\") for minimum gross proceeds of $12.5 million and maximum gross proceeds of $22.5 million (the \"Offering\"), in connection with its previously announced purchase and sale agreement to acquire the remaining 45 percent partnership interest in Peace River Oil Partnership (the \"Acquisition\"). Final pricing of the Subscription Receipts offered under the Offering (the \"Offering Price\") and the determination of the number of Subscription Receipts to be sold pursuant to the Offering will be determined in the context of the market prior to the filing of the amended and restated short form prospectus in respect of the Offering.The Offering is being conducted by a syndicate of agents (the \"Agents\") and is subject to customary closing conditions, including, but not limited to, the execution of an agency agreement and the receipt of all necessary regulatory approvals, including the approval of the securities regulatory authorities and the Toronto Stock Exchange. The net proceeds from the Offering will be used to repay and permanently reduce on a pro rata basis the non-revolving term loan of the Company's credit facility and its outstanding senior notes. Funds will subsequently be redrawn from the revolving term loan of the credit facility and loaned to the wholly-owned entity of Obsidian Energy to fund the Acquisition. The Company has granted the Agents an option (the \"Over-Allotment Option\") to offer and sell that numbers of additional Subscription Receipts as is equal to 15 percent of the aggregate number of Subscription Receipts sold under the Offering on the same terms and conditions as the Offering. The Over-Allotment Option is exercisable at any time for a period of 30 days after the closing of the Offering.The Su...